State-run Indian Oil Corporation (IOC) has posted a 97 per cent jump in net profit for the third quarter of the financial year ended on December 31 to Rs 78.83 billion as against Rs 39.95 billion during the same time last year on the back of strong inventory gains and high refinery margins.

The board of directors has declared an interim dividend of Rs 19 per equity share at a face value of Rs 10 per equity share. The company's total income for the October to December quarter of the financial year also zoomed 14 per cent to Rs 1.32 trillion as compared to Rs 1.16 trillion during the third quarter of the financial year 2016-17. "During the quarter, our bottom-line was boosted by higher inventory gains of Rs 63.01billion compared to Rs 30.51 billion during the same quarter last year and also higher gains from the petrochemical business," said ) AK Sharma, director (finance) of IOC.

The company added that for the first six months of the financial year, there was an impact of Rs 7 billion due to the introduction of goods and services tax on account of stranded input credit and its overall impact for the year is expected to be Rs 20 billion.

The gross refining margin (GRM) for the third quarter of the financial year 20-17-18 was $12.32 per barrel as compared to $7.67 per barrel during the same quarter last year, the company chairman Sanjiv Singh said.

Singh said that the company sold 66.204 million tonnes of products, including exports, during the first nine months of 2017-18. The company accounted for Rs 22.49 billion in April to December 2017 coming from the government for sale of subsidised kerosene. "We have posted a growth of 5 percent in diesel and 10 per cent in gasoline for the year so far.

For the next five years, the company is expecting a product sales growth of 4.5 percent, where aviation turbine fuel and petrol will be growing in double digits," he said.

The board has also recommended issue of bonus shares in the ratio of one equity shares of Rs10 for one existing equity share of Rs 10 each, which is subject to the approval of members of the company.

BS VI fuel on track in Delhi

Indian Oil Corporation has kicked off its steps towards moving towards the complete rollout of BS VI grade of auto fuel in Delhi by April 2018 and across the country by April 2020. "We have already supplied a small quantity of 10 kilolitres (kl) early this month through truck tanks in Delhi," Singh said, which is more like a preparedness check for the rollout from the part of the company. Industry sources reveal that the cleaner fuel may cost at least 25-30 paise more per litre for consumers. After the complete rollout, there is likely to be a dual pricing system for BS IV and BS IV fuel, as the upgrade may attract an additional investment of Rs 30,000 crore investment that the three oil marketing companies IOC, Hindustan Petroleum Corporation (HPCL)and Bharat Petroleum Corporation (BPCL).ends